After just 17 months, the government has raised ABSD rates again in an effort to cool Singapore’s property market as it remains strong despite a bleak economic outlook.

Singaporeans must now pay a 20 per cent additional buyers’ stamp duty (ABSD), for acquiring a 2nd residential property starting from 27 April 2023. The previous rate was 17 per cent.

Citizens are now required to pay 30 per cent on their 3rd and subsequent residential properties. This has been increased from the previous 25 per cent.

A similar ABSD rate applies to Singapore Permanent Residents (PRs) who are purchasing a 2nd residential property.

The government has also raised the ABSD rate for Singapore PRs acquiring their 3rd and subsequent residential property from 30 per cent to 35 per cent.

As for foreigners, the ABSD rate for purchasing any type of residential property will be increased from 30 per cent to 60 per cent.

Except for developers, the ABSD rate for entities or trusts purchasing any residential property in Singapore will be increased from 35 per cent to 65 per cent.

Despite the implementation of property cooling measures in December 2021 and September 2022, property prices have shown renewed signs of acceleration in 1Q2023, according to the Ministry of Finance, the Ministry of National Development (MND), and the Monetary Authority of Singapore (MAS).

The demand from locals acquiring homes for their own stay has been particularly strong, and there has also been renewed interest in Singapore’s residential property market from both domestic and foreign investors.

The government warned that property prices could outpace the economic fundamentals if it’s been left unchecked.

Newport Residences, which is City Development’s (CDL) freehold 246-unit luxury condo development sitting on the site of former Fuji Xerox Towers along Anson Road in Tanjong Pagar, was supposed to open this weekend (29 April 2023).

It’s one of the most highly anticipated residential projects this year as the most recent freehold residential project launched in the precinct was Onze @ Tanjong Pagar back in 2013.

However, following the latest round of property cooling measures that were announced just minutes before midnight on 26 April 2023, which went into effect the following day, CDL has decided to postpone Newport Residences’ preview.

On the other hand, EL Development plans to launch Blossoms By The Park on 29 April as planned.

The new residential project along Slim Barracks Rise, a 275-unit 99-year leasehold condo, is located in one-north.

EL Development doesn’t feel that the new cooling measures will have much effect on the sales of Blossoms By The Park as most of the potential buyers are expected to be buying their very 1st property.

Hoi Hup Realty, together with its joint partner Sunway Property will proceed with the launch of its upscale 816-unit condo project, The Continuum.

On 21 April 2023, the freehold condo project along Thiam Siew Avenue in prime District 15 held its preview.